US President Donald Trump has backed down on threats to seize Greenland by force from ally Denmark, announcing a vague deal aimed at ensuring security of the Arctic territory.

Trump cast his retreat – also lifting the promise of sanctions against European nations that spoke out against the threats to Denmark – as a win, saying the deal gives Washington "everything we wanted."

The agreement, he told reporters at the World Economic Forum in Davos, was negotiated with NATO Secretary-General Mark Rutte and would last "forever."

"I think it puts everybody in a really good position, especially as it pertains to security, and mineral

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